Download Study Guide for Exam 1 - Marketing Management | MKTG 3104 and more Study notes Marketing Management in PDF only on Docsity! Exam 1 Marketing: provides value to customers through close relationships with them to benefit the organization and those closely associated with it -Marketing seeks to: 1. Discover the needs and wants of prospective buyers and 2. Satisfy them Exchange: trade of things of value between buyer and seller so that each is better off Need occurs when a person feels deprived of basic necessities such as food (physiological) Want is a need that is shaped by a person’s knowledge, culture and personality (psychological) Marketing opportunity *Try to shape needs into wants *Create overtime, profitable customer relations *Marketing is managing profitable customer relationships Poor marketing may contain: 1. Concept failure: garlic cake 2. Wrong audience: smokeless cigarettes 3. Wrong buyer: dunk-a-balls cereal 4. Fear appeal: monster spray 5. Name issue: viruscidal Kleenex *Better mousetrap fallacy: just because its better doesn’t mean there is a market for it Management Orientations: 1. Production: industrial revolution, Ford Model-T 2. Selling: General Mills shipping wheat down the river 3. Marketing: G.E. producing what people need 4. Socially responsible: recyclables and eco-pod Marketing management is the “art and science of choosing target markets and building profitable relationships with them.” -Where are lucrative relationships? How to manage them? -Negative product experience carries more weight because people are more vocal 1. Analysis 2. Planning 3. Implementation 4. Control Customer Relationship Management (CRM) Attracting, retaining and growing customers; building relationships and customer equity -Perceptions are key -Created by meeting/exceeding expectations -LTV: how much individual customer’s lifetime purchases are equal to -Customer equity: sum of all your LTV’s Worry more about customer satisfaction when there is high competition and customers can go elsewhere Strategic Planning (across the SBU): 1. Mission Statement – must deliver, realistic 2. Set Objectives – in amount, in time frame 3. Plan Business Portfolio *Use BCG matrix and product/expansion grid Mission statement: 1. Market-oriented 2. Realistic 3. Specific 4. Leverage distinct competencies 5. Motivating 6. Fit market BCG Growth-Share Matrix: -X axis: how much of market you have (market share) -Y axis: Potential Question marks: build, niche, divest Dogs: build, divest Stars: Maintain, build Cash cows: harvest Product/Market Expansion Grid: 1. Identify market opportunities 2. Implement strategy to gain market share Marketing strategy – identifying opportunities Marketing mix (4 P’s) – make it happen -Segmentation: split up market -Differentiate yourself -Positioning: how to do it all, what is consumer thinking now SWOT Analysis stands for Strengths Weaknesses Opportunities Threats Marketing diagram: -LTV at the core -Outside core are the 4 P’s (product, price, promotion, place) -Management surrounds it all -5 C’s on the outside (competition, customers, conditions, company, channels
